Thousands of workers face uncertainty after Carillion, the UK's second largest construction company, went into liquidation yesterday.
The European Court of Justice has held that "pre-pack" administration, which is designed to facilitate the sale of a business as a going concern in the event of insolvency, may not prevent employees from having TUPE rights.
Updated to include details of the increase in the maximum amount of a week's pay for payments by the Secretary of State, effective from 6 April 2017.
Updated to include details of the increase in the maximum amount of a week's pay for calculating a statutory redundancy payment, effective from 6 April 2017.
A Northern Ireland tribunal has awarded protective awards of 90 days' pay to former City Link employees over the company's failure to consult on their redundancies.
In DLA Piper's latest case report, the Employment Appeal Tribunal examined the TUPE provisions that mean that employees do not automatically transfer where the transferor is "under the supervision of an insolvency practitioner".
The Court of Appeal has held that, where the reason for a TUPE-related dismissal is to continue running a business and to avoid liquidation, this can constitute an economical, technical or organisational (ETO) reason entailing changes in the workforce, meaning that such a dismissal is not automatically unfair.
In DLA Piper's case of the week, AEI Cables Ltd v GMB and others, the Employment Appeal Tribunal held that the employment tribunal, when setting a protective award for failure to inform and consult on redundancies, should have taken account of the period during which the company was insolvent.
Updated to reflect an increase in the cap on a week's pay, with effect from 6 April 2017.
HR and legal information and guidance relating to insolvency.